Sports Direct in share fall

Merrill Lynch has come under fire from City investors over the growing crisis at Sports Direct, the retail empire controlled by billionaire Mike Ashley. The US investment bank advised Sports Direct when it floated on the stock market in February, but the shares have lost one third of their value after a thinly veiled profits warning last month.

Merrill has attracted flak because earnings are now expected to be below the £150m forecast at the time Sports Direct came to the market. There was renewed criticism of Merrill on Friday from shareholders reeling from the shock resignation of respected chairman David Richardson last Thursday.

In a statement, Richardson said that he had been 'unable to establish a strong working relationship' with the executive team, which includes Ashley, who netted £929m when he sold a 40 per cent stake at the time of the float.